VMware acquires VeloCloud in bid to take on Cisco

Virtualization software giant VMware Inc. announced it plans to acquire software-defined wide area network provider VeloCloud Networks Inc. in a move that suggests it’s squaring up to battle Cisco Systems Inc. for dominance in the networking world.

“Velocloud enables us to push NSX microsegmentation into the edge environment, so there’s a nice dovetail between what we do with virtual machines in the data center and what they do at the edge,” said Rajiv Ramaswami, VMware’s chief operating officer of products and cloud services.

No purchase price was revealed for the deal, which is expected to close in VMware’s fiscal fourth quarter, which ends Feb. 2.